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Issues:
1. Exemption claimed under section 9(2) of the Estate Duty Act for gifts made by deceased. 2. Admissibility of estate duty payable as a deduction while computing the principal value of the deceased's estate. Analysis: The judgment pertains to a case where the accountable person filed an estate duty account for the deceased, claiming an exemption of Rs. 10,000 out of total gifts of Rs. 57,975 made by the deceased under section 9(2) of the Estate Duty Act. Section 9(1) specifies that property received under a disposition made by the deceased within two years of death is deemed to pass on death unless exempted. Sub-section (2) of section 9 provides exemptions for gifts made in consideration of marriage or part of normal expenditure. The accountable person argued that the deceased regularly gifted on Makar Sankranti Day, qualifying as normal expenditure under section 9(2)(b). The Tribunal found that the gifts were not made on Makar Sankranti Day or any festive occasion, and there was no evidence to prove they were part of normal expenditure. As the accountable person failed to establish the deceased's regular gifting on Makar Sankranti Day, the Tribunal denied the exemption under section 9(2)(b). The court affirmed the Tribunal's decision, stating that without the foundational fact of regular gifting on Makar Sankranti Day being proved, the exemption cannot be granted. Regarding the second issue, the court relied on a previous decision and held that the estate duty payable by the accountable person is not an admissible deduction while computing the principal value of the deceased's estate. The court directed the accountable person to seek recourse if the Supreme Court rules differently in a pending case from the Andhra Pradesh High Court. The judgment concluded by disposing of the reference with no order as to costs.
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